Bulgaria proposes methodology to determine fair value of goods

The Bulgarian government has proposed a draft methodology to determine the ‘fair value’ of goods, specifically targeting basic food products. This initiative aims to fulfill requirements within the Consumer Protection Act to increase transparency and predictability in pricing.

The government intends for the methodology to serve as an analytical tool for regulatory bodies to monitor price processes and provide consumers with comparable information. While the proposal does not formally introduce price controls, caps, or mandatory pricing, it establishes a ‘unified reference mechanism’ to compare actual market prices against an economically justified indicative level.

Economist Lachezar Bogdanov has raised concerns regarding the potential for market uncertainty. He notes that while the Commission for Protection of Competition already performs sectoral analyses, the new methodology could be used by state institutions or tax authorities for future sanctions or public campaigns against specific market participants.